What California Form 540 2EZ (2015) Is For
California Form 540 2EZ (2015) is a simplified state income tax return for full-year California residents with very straightforward tax situations. It is designed for people who have only basic wage and investment income, claim the standard deduction, and do not have adjustments or complex credits.
Unlike the full Form 540, California Form 540 2EZ (2015) bakes the standard deduction and exemption credits into special tax tables. That means less math and fewer lines to complete. If you have self-employment income, rental properties, significant capital gains, or want to itemize deductions, this form is not for you and you must use regular Form 540 instead.
When You’d Use California Form 540 2EZ (2015)
You would use Form 540 2EZ to file your original 2015 California resident individual income tax return if you met all the eligibility rules and had a simple return. The original due date for the 2015 return was April 18, 2016. Filing and paying by that date avoided late filing and late payment penalties.
California automatically extended the filing deadline by six months, to October 17, 2016, but this extension applied only to filing, not to paying tax. To avoid late payment penalties, you needed to pay at least 90% of your total 2015 tax by April 18, 2016. Interest accrues on any unpaid tax from the original due date, even if you qualified for penalty relief.
You cannot use California Form 540 2EZ (2015) if you made an extension payment using Form FTB 3519. In that situation, you must file regular Form 540, even if you otherwise meet 2EZ income and filing status rules.
If you later discover an error after filing Form 540 2EZ, you amend using Form 540X. The state does not allow you to file an amended return on Form 540 2EZ, and amended returns must be paper filed. You also have to file an amended California return if the IRS later changes your federal return and that change affects your California tax.
Key Rules or Details for 2015
Who Can Use California Form 540 2EZ (2015)
You must meet all of the following conditions:
- Residency
- California resident for all of 2015
- Not blind (blind taxpayers must use Form 540)
- Filing status allowed
- Single
- Married/RDP filing jointly
- Head of household
- Qualifying widow(er)
- You cannot use 2EZ if you are married/RDP filing separately or if either spouse/RDP was a nonresident at any time in 2015.
- Income limits
- $100,000 or less for single or head of household
- $200,000 or less for married/RDP filing jointly or qualifying widow(er)
- Income types allowed (and nothing else)
- Wages, salaries, tips reported on W-2
- Taxable scholarships and fellowships reported on W-2
- Interest and dividends
- Pensions and annuities
- Unemployment compensation
- Paid family leave insurance
- Social Security and Tier 1 and Tier 2 Railroad Retirement benefits
- Capital gain distributions from mutual funds (Form 1099-DIV, box 2a only)
- Dependents and deductions
- Up to three dependents allowed
- Standard deduction only; no itemized deductions
- No adjustments to income (no IRA deduction, student loan interest, etc.)
Withholding claimed on California Form 540 2EZ (2015) must come only from W-2 box 17 or Form 1099-R box 12. You may claim only the nonrefundable renter’s credit and the California Earned Income Tax Credit (EITC). Any other credit requires regular Form 540.
Special Dependent and EITC Rules
You may be barred from using 540 2EZ if someone else can claim you as a dependent and your income falls below certain thresholds or you have your own dependent. For 2015, the California EITC is available to qualifying taxpayers with earned income under $13,870. You do not need a child to qualify, but you must complete Form FTB 3514 to claim the credit.
Registered domestic partners must file using married/RDP filing status for California, even if they file single for federal purposes. If they meet all other 2EZ requirements and file jointly, they may use 540 2EZ; filing separately requires Form 540.
Step-by-Step (High Level)
Step 1: Confirm You Qualify
Carefully review the residency, filing status, income limits, income types, and credit rules. If you have self-employment or rental income, more than three dependents, or itemized deductions, you must use Form 540 instead.
Step 2: Gather Your Documents
Collect:
- All Forms W-2 (wages)
- 1099-INT (interest) and 1099-DIV (dividends and capital gain distributions)
- 1099-R (pensions)
- 1099-G (unemployment or paid family leave)
- SSA-1099 and any Railroad Retirement statements
You will use these to fill in income and withholding lines on California Form 540 2EZ (2015).
Step 3: Complete Personal and Exemption Information
On Side 1, enter your name, address, SSN or ITIN, and filing status. If married/RDP filing jointly, include both spouses in the same order used on federal returns. Indicate if anyone else can claim you as a dependent and whether you or your spouse are age 65 or older. Enter information for up to three dependents, including names, SSNs, and relationships.
Step 4: Report Income
Use the lines on the form to enter:
- Wages from W-2 box 16
- Interest and dividends from 1099-INT and 1099-DIV
- Pensions and annuities from 1099-R
- Capital gain distributions from mutual funds (box 2a only)
- Unemployment compensation and other allowed income
Add these amounts to arrive at your California adjusted gross income (AGI) for Form 540 2EZ.
Step 5: Use the 2EZ Tax Tables
Look up your tax using the 2EZ tax table for your filing status. These tables already account for the standard deduction and basic exemption credits. If someone can claim you as a dependent, use the dependent tax worksheet before referencing the tables. Enter the tax amount directly on the form.
Step 6: Claim Credits and Use Tax
Next, claim any:
- Senior exemption credit (if you or your spouse are 65 or older)
- Nonrefundable renter’s credit, if you qualify
- California EITC from Form FTB 3514
On the use tax line, report use tax on out-of-state purchases where sales tax was not collected. You can use the worksheet or the estimated use tax table in the booklet. Enter “0” if you owe no use tax.
Step 7: Apply Withholding and Determine Refund or Amount Due
Enter California income tax withholding from W-2 box 17 and 1099-R box 12. Compare total payments and refundable credits to your total tax. If payments exceed tax, you are due a refund and may elect direct deposit. If tax exceeds payments, you owe the difference.
Step 8: Voluntary Contributions and Filing
You may choose to make voluntary contributions to specified funds on the return. These reduce your refund or increase your balance due. Finally, sign and date the return; both spouses must sign if filing jointly. Attach W-2s to the front of Form 540 2EZ and file by mail, or e-file using CalFile or approved software.
Common Mistakes and How to Avoid Them
- Using Form 540 2EZ when you do not qualify
- Double-check income types, income limits, and residency rules. If you have self-employment or non-California income, use Form 540 or 540NR.
- Missing the dependent checkbox or worksheet
- If another taxpayer can claim you as a dependent, you must check the box and use the dependent worksheet or your tax will be wrong.
- Wrong tax table or incorrect income entries
- Use the table that matches your filing status and line 16 income. Misreading the table is a frequent cause of errors.
- Incorrect or missing SSNs
- Enter SSNs or ITINs exactly as on official documents for you, your spouse, and dependents. Errors can delay processing and credits.
- Incorrect direct deposit information
- Verify routing and account numbers with your bank before entering them. Errors often lead to rejected deposits and mailed checks.
- Claiming renter’s credit or EITC when ineligible
- Use the qualification worksheets in the booklet to confirm you meet all conditions before claiming these credits.
- Not reporting use tax or leaving the line blank
- Enter either the calculated amount or “0” if you owe none; the line should not be left blank.
- Not signing the return
- An unsigned California Form 540 2EZ (2015) is treated as not filed. Both spouses must sign when filing jointly.
What Happens After You File
Once the Franchise Tax Board receives your California Form 540 2EZ (2015), they scan and check the return for math errors, missing information, and mismatched withholding. E-filed returns are usually processed more quickly than paper ones. Refunds are issued by direct deposit or paper check, depending on what you selected.
If you owe tax, paying by the original due date reduces penalties and interest. If you cannot pay in full, you can apply for an installment agreement so that you pay over time instead of facing immediate collection actions. Interest and penalties continue to accrue until the balance is paid.
The FTB may send you a notice if they adjust your return, need more information, or find that withholding reported does not match employer records. Responding quickly helps avoid further penalties or delays. You should keep a copy of your filed California Form 540 2EZ (2015) and all supporting documents for at least four years.
FAQs
Can I use California Form 540 2EZ (2015) if I have self-employment income?
No. Any self-employment income, even a small side business, disqualifies you from using 540 2EZ. You must file the full Form 540 and attach the appropriate federal schedules.
What if my W-2 shows different amounts in boxes 1 and 16?
That usually means you had income outside California. In that case, you generally cannot use 540 2EZ and may need Form 540NR for nonresidents or part-year residents.
Can I still get the California EITC using Form 540 2EZ?
Yes, if you otherwise qualify. You must complete Form FTB 3514 and transfer the credit amount to the EITC line on California Form 540 2EZ (2015).
Do I need to file if my income is very low?
You may not be required to file, but it can still be smart to file if California tax was withheld or you qualify for California EITC or renter’s credit. Filing lets you claim a refund of any overpaid tax.
What if I made an extension payment with Form FTB 3519?
You cannot use California Form 540 2EZ (2015) if you used Form FTB 3519 for an extension payment. You must complete and file the full Form 540 instead.
How do I amend a 2015 Form 540 2EZ return?
You must use Form 540X to amend. You cannot amend on 540 2EZ itself, and you must mail the amended return on paper with any supporting documents.
